Corporate Logo(source: samsung.com)
Foreign investors' selling of Samsung Electronics (005930) appears to have ended following the presidential election, with a notable shift toward net buying. According to analysts, the foreign ownership ratio has likely passed its trough, setting the stage for a more favorable supply-demand environment for the stock in the second half of the year.
On July 23, Byun Jun-ho, an analyst at IBK Investment & Securities, stated, “Expectations for new government policies have lifted investor sentiment toward the domestic stock market, leading to an inflow of foreign capital. Samsung Electronics stands to benefit from this trend.” He added, “Historically, foreign capital inflows have driven strong outperformance by large-cap stocks, particularly in semiconductors, a pattern that could repeat.”
Although foreign buying of Samsung Electronics paused earlier this month, it resumed following the company’s second-quarter earnings announcement.
On July 8, the company reported an earnings shock, with operating profit falling significantly short of market expectations. While consensus estimates pointed to 5.9 trillion won, the preliminary figure came in at just 4.6 trillion won — 22% below forecasts.
Despite the weak earnings, foreign investors began aggressively buying the stock just two days after the release. “This reflects a market recalibration in response to the disappointing results,” Byun noted. “It suggests the formation of a new bottom in both earnings and share price.” Over the next eight trading sessions, foreign investors purchased approximately 2 trillion won in net terms, a scale that Byun described as “historically strong.”
From the second half of last year through the first half of this year, foreign investors had been heavy sellers of Samsung Electronics. Between August 2024 and May 2025, they sold a net 26.3 trillion won in shares — accounting for 70% of total foreign net selling in the KOSPI market during that period.
Byun noted that the foreign ownership ratio had been excessively reduced and is now likely past its low point. Following a brief dip below 50% after reciprocal tariffs were introduced in April, the foreign ownership ratio has since recovered to 50.2% amid renewed buying after the election. Over the past decade, foreign ownership in Samsung Electronics has typically ranged between 49% and 58%.
Byun further emphasized that the company's valuation indicates potential for recovery. “Compared to SK Hynix and the broader KOSPI, Samsung Electronics’ valuation has declined to levels last seen during the global financial crisis,” he said. “Its two-year relative return versus SK Hynix has widened to -124 percentage points.”
He added, “Third-quarter consensus estimates for Samsung Electronics’ operating profit are around 8.3 trillion won, suggesting a sharp recovery. This indicates a clear turnaround following the short-term earnings peak seen in the first half of last year. Given the improving foreign inflows, undervaluation, easing investor neglect, and expected earnings growth, we believe any price correction should be viewed as a buying opportunity.”
*[KOSPI] Samsung Electronics(005930) is the top company in the KOSPI, dominating the global market in semiconductors and smartphones. Its market capitalization is 390.696 trillion won (as of July 22, 2025, closing price).
Corporate Logo(source: samsung.com)
Foreign investors' selling of Samsung Electronics (005930) appears to have ended following the presidential election, with a notable shift toward net buying. According to analysts, the foreign ownership ratio has likely passed its trough, setting the stage for a more favorable supply-demand environment for the stock in the second half of the year.
On July 23, Byun Jun-ho, an analyst at IBK Investment & Securities, stated, “Expectations for new government policies have lifted investor sentiment toward the domestic stock market, leading to an inflow of foreign capital. Samsung Electronics stands to benefit from this trend.” He added, “Historically, foreign capital inflows have driven strong outperformance by large-cap stocks, particularly in semiconductors, a pattern that could repeat.”
Although foreign buying of Samsung Electronics paused earlier this month, it resumed following the company’s second-quarter earnings announcement.
On July 8, the company reported an earnings shock, with operating profit falling significantly short of market expectations. While consensus estimates pointed to 5.9 trillion won, the preliminary figure came in at just 4.6 trillion won — 22% below forecasts.
Despite the weak earnings, foreign investors began aggressively buying the stock just two days after the release. “This reflects a market recalibration in response to the disappointing results,” Byun noted. “It suggests the formation of a new bottom in both earnings and share price.” Over the next eight trading sessions, foreign investors purchased approximately 2 trillion won in net terms, a scale that Byun described as “historically strong.”
From the second half of last year through the first half of this year, foreign investors had been heavy sellers of Samsung Electronics. Between August 2024 and May 2025, they sold a net 26.3 trillion won in shares — accounting for 70% of total foreign net selling in the KOSPI market during that period.
Byun noted that the foreign ownership ratio had been excessively reduced and is now likely past its low point. Following a brief dip below 50% after reciprocal tariffs were introduced in April, the foreign ownership ratio has since recovered to 50.2% amid renewed buying after the election. Over the past decade, foreign ownership in Samsung Electronics has typically ranged between 49% and 58%.
Byun further emphasized that the company's valuation indicates potential for recovery. “Compared to SK Hynix and the broader KOSPI, Samsung Electronics’ valuation has declined to levels last seen during the global financial crisis,” he said. “Its two-year relative return versus SK Hynix has widened to -124 percentage points.”
He added, “Third-quarter consensus estimates for Samsung Electronics’ operating profit are around 8.3 trillion won, suggesting a sharp recovery. This indicates a clear turnaround following the short-term earnings peak seen in the first half of last year. Given the improving foreign inflows, undervaluation, easing investor neglect, and expected earnings growth, we believe any price correction should be viewed as a buying opportunity.”
*[KOSPI] Samsung Electronics(005930) is the top company in the KOSPI, dominating the global market in semiconductors and smartphones. Its market capitalization is 390.696 trillion won (as of July 22, 2025, closing price).